Pittsburgh American Eagle Outfitters on Wednesday posted a 66% drop in its second-quarter net income as it was forced to slash prices on summer items and issued a weak forecast for the current back-to-school quarter.
"The second quarter was a challenging period, resulting in a miss to our sales and profit plans," CEO Jim O'Donnell said in a statement. "Given the inconsistencies in business trends and unpredictable consumer behavior, we have intensified our actions to improve efficiencies, streamline our process and strengthen profitability."
For the three months ended in late July the teen retailer earned $9.7 million, down from last year's net income of $28.6 million. Its results included one-time costs related to closing its 28 Martin+Osa stores.